News

Lime Fresh Mexican Grill

Finding success with a high-energy concept.

October 6, 2008

This article originally published in Fast Casual magazine, October/November 2008.

Lime Fresh Mexican Grill founder John Kunkel savors his status as a 22-year student of the restaurant industry. But Kunkel relishes Lime Fresh's growing success in the Miami area even more.

"I'm having such a fantastic time with this," Kunkel said. "It's a matter of pride. I'm proud to have customers bring their family and friends any time of the day, and have a fantastic meal at an affordable price." Several years ago, Kunkel noticed a growing consumer interest in fresh food.

Long a fan of dining out — and of eating Mexican cuisine — Kunkel decided a fast casual that specialized in quality, fresh Mexican fare could be a hit.

"I'm a big student of the industry, and I'm always reading," Kunkel said. "Consumers are becoming more educated. With channels like the Food Network, they know what fresh is. I'm targeting those educated consumers who care about what they put in their body." Drawing from his years with Brinker International Restaurants and a long resume in the bar and restaurant industry, Kunkel created Lime Fresh's interior to "bring the camaraderie of the kitchen atmosphere" into the open, about five to seven feet from the front door. His familiarity with South Beacharea residents also guided him to create a menu that is perceived as healthy.

"(Mexican food) is not necessarily lowfat or low-carb all the time, but with options like wheat tortillas and fresh ingredients, we're bringing healthy fresh to Mexican food. People are gravitating to fresh and it's not going away," he said.

So Kunkel, as he promises in his brand, stocks his units with only enough product for a day's service.

"I try to order what we need for that day and try to run out by the end of the day," he said. "No chicken is left over and carried into the next day. Everything is prepared daily except for the salsas, which benefit from sitting a little bit." Additionally, Kunkel added to his menu "every Mexican beer under the sun," a signature sangria and wine and installed garage-style doors for opening the units to the sidewalk and energy of South Beach.

Creating a brand worth investing in

Kunkel says his units are alive with energy. Even though they are only around 800 square feet, he serves about 1,000 customers a day."If we're only doing about $1 million a year (in gross revenue), we're doing something wrong," he said.

Kunkel waited about two years after his grand opening in 2004 to open up his brand to franchisees. He wasn't interested in how many franchises he could sell — a quick road to sterility and lapsing success, he said.

"We threw the brakes on franchising because it seems to be the death of concepts until they are down 100 percent," Kunkel said. "There are wonderful concepts out there, but the ball is dropped regarding operations and what they're trying to convey to the customer. We were careful not to fall into that ourselves." Andrew Hirsch is one of those franchisees who passed the mark. The 27-year - old Hirsch walked in as a customer several years ago and in February, took over the North Miami franchise and is opening his second franchise in Coconut Creek, Fla., in November.

"The whole mentality of the concept — and the vibrancy of the concept — it's not the typical Mexican restaurant. It has a South Beach feel," Hirsch said.

Despite taking over an already-opened restaurant, Hirsch had to undergo rigorous training to become a franchisee, working every position he'll look to hire.

"Staffing, staffing, staffing is, has been and continues to be our largest hurdle," Kunkel said. "Our training is as down and dirty as it gets. No one can jump in and bail you out."

Blurring the lines

Right now, Kunkel is planning for further franchises: three are opening in 2009 and the plan is for 10 more units to open in 2010.

With his price point and fresh concept, his growing success is not a surprise, said Maria Caranfa, director of Chicago-based foodservice research group, Mintel Menu Insights.

"A lot of these fresh Mexican grills are capitalizing on this freshness trend," Caranfa said.

She said Kunkel's addition of wine and beer also offers a good option for customers looking for the in-between model: an option between casual dining and upscale.

"There's not too many of those that I'm familiar with," she said. "A lot of restaurants are starting to blur the lines for traditional categories in different dining segments."

Photos courtesy Lime Fresh Mexican Grill.